I Have Money
Sorry this is probably not the right forum but saw it was the most active. I have seen a lot of traffic on this site about no money down bad credit etc but what if I have money, what aspect of investing would you take? Please don't take this as bragging I'm just trying to give information. I have about 200k in cash and equity in my home of about 550k. I live in coastal South Carolina and would like to quit my full time job and invest in real estate. Any suggestions from the pro's?
What aspect, whole-sale, re-hab, commercial? Would you partner?
Which is the best route, buy one big commercial property or lots of single family?
Any advice would be appreciated.
As a famous musician once said, "Nice Problem to Have."
You really do have quite a few options and what it comes down to now is how much time you want to spend.
As in life, Cash is King, although in this business you can do wonders without cash. Since you do have the cash, you can easily become a private lender to someone who invests in real estate full time and years of experience. You could provide them with funds if they teach you what they know...they will be more than happy too.
You can get started with subject2's (get John Locke's book...or better yet pay him for a one on one session).
Even better, learn everything you can about short sales and preforeclosures. Learn the in's and out's of that business and you will have an endless supply of properties avaiable for you to purchase. I have an attorney friend who pays cash at the sheriff's auction for $160,000 homes and then turns around and lease/options them for big money and does very well.
There will be a lot of people who tell you what you should do and probably people that are going to try to scam you out of your money...telling you they have this great course or blah, blah, blah. Do your own research, talk to people, read reviews but your best bet is to keep posting to this forum or others about things you find out or people who say they will "help" you.
By no means, I am no John Locke, Ron LeGrand, etc but I will give honest, free advice based upon years of sifting through "deals, courses, and people". If you ever need some help, feel free to drop me a line...or anyone else on this forum.
Keep in touch,
Christian "The Solutions Kid" Beebe
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i'm starting out just like you. the BIG difference between you and me is that you have a good paying job (i presume) while mine pays less.
if i were you, i'll hold on to your day job and get to know the REI business first, test the waters and if you think it'd be for you, then leave your boss goodbye. you can do it partime and still earn decent profit.
Knowledge is power, so take the time and learn under a mentor THEN select your preference and goals for a real estate business.
Eric & Rosa
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Take advantage of the market now and refi. Get your cash out of your home with a low interest (1.95% ARM) while you have the chance. Learn all you can before you part with your $$.
I am an investor that does rehabs and have been doing joint ventures with someone that has an investor with the cash. Now, it appears that he has lost his mind and I am going on my own and need my own investor with the cash to do what needs to be done. I would gladly do joint ventures on a 50-50 split with someone that has the capitol. Speak to an attorney to learn how to protect yourself first. There are alot of scammers out there. Trust me, I seen to attract them.
Once I get myself in the position of having enough cash, I am going to become a money source for other investors. Let them do all the hard work and have all the pressures associated with it. I'll just sit back and collect the interest on my money. AHHHHH
There are a couple of things to consider. What do you need? What do you want? What do you like?
Obviously owning real estate gives you:
-Appreciation
-Tax Shelter
-Cash Flow (Hopefully!)
-Leverage
You could become a lender, which would give you the income, but not the other 3 things. It would also come with fewer headaches. If you got a 6% return on your money you'd have an extra 39K per year to play with. Not a killing, but you'd have few headaches. Do hard money and you'd double that, but to oversee it more.
You could also buy tax liens and get a 10 to 38% return, but you'd have to buy a lot of them. Not a bad way to go though.
You could buy an apartment complex by yourself around 2.5 Million using traditional methods.
Do you want to be hands on or hands off? How much do you plan on educating yourself before you jump in? Do you want to do it alone or have a partner.
Good income, good credit, and cash is a powerful combination. All you need to be unstopable is experience and knowledge.
Thanks Hibby76 and others for your comments. I look forward to your post. Not sure how the hard money lending works but would be concerned about protecting my cash if the investor fails. I like doing things I am in control of. I have looked a small apt's and mobile home parks. It is amazing that the lower class areas hold the most ROI. Don't know how tolerant I would be on late payments or no payments. Whole-sale seems to be the most inviting with re-habbing along the way but to be honest, I have not done well finding properties in the last three months. Again, I need to keep my full-time job till I can equal my pay plus benifits. With this criteria, would you pursue whole-sale? And if you would, how do you get the good leads if you can only part time. Are the .com foreclosure sites worth it?
I don't know anything about anything because I'm so new to actually DOING this, but I can answer the question about the .com foreclosure sites.
Personally, I think they're a load of crap, and so are the "lists" that people will try to sell you all day via the web, phone, or snail mail. I suppose it depends on how sophisticated your county records office is, or how much time you do/plan to spend on the Internet doing research. I know for me, if I put in an hour on the computer, I can walk away from the keyboard with 10+ pre-foreclosure leads per day, complete with owner names and contact info - and I only search for houses meeting specific location and floor plan requirements.
If your county records department isn't sophisticated enough to have this information readily (and speedily) available online, though, one of the foreclosure sites might be worth your time - but keep in mind, you're getting someone else's leftovers.
awphoenix, I see your post and being from palm beach and astonished. I have been killing myself to get down to courthouse before or after work to research. Your saying you can get this information online? Mind pointing the right direction? Evrything I have seen requires you to have a parcel # in hand for any lookups.
I'd love to team up with someone from this area - I noticed there isn't a club for this side of the state (listed here, at least). Perhaps we should start one, and get together, and I can show you how I get the research done!
I've been buying for a while, and really desire to multiply cash-flow...not seeing enough quality deals (bought 4 deals in the past year). Have cash, credit, some exp, handle my own mgmnt to date....Would like 10-20 more properties for buy-hold in Dallas...suggestions?
I have several rental properties in Spartanburg, SC., that I am liquidating at 70 - 75% of the appraised value. The only problem that I am facing is that I need to get rid of them fairly soon so that I can move onto something else. The rental income for these properties are great. All have acceptable termite inspections and currentl appraisals. There are a total of 5 SFR and 2 (2) BR Duplexes. Together, they all appraise for $420,000.00. I am letting them all go for $315,000.00. I am taking a loss, but I need to liquidat ASAP.